IDBI Bank Limited (IDBI) AI Stock Analysis

• Market Cap: ₹754.28B
• Dividend Yield: 2.08%
• Average Volume (3M): 411.24K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 1.75
• Revenue Growth: 11.31%
• EPS Growth: 37.17%
• Country: IN
• Employees: 17,047
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.82
• Shares Outstanding: 10,752,402,000
• 10 Day Avg. Volume: 269,403
• 30 Day Avg. Volume: 411,239
• PEG Ratio: 0.34
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 2.59
• P/FCF Ratio: 3.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹75.00 ▼(-34.70% Downside)
• Action: Downgraded Date: 03/20/26
• Date: Action: Downgraded 03/20/26

Solid financial performance is the primary support for the score, driven by improving profitability, stable leverage, and better cash generation. This is meaningfully offset by very weak technicals, with the price far below major moving averages and negative momentum. Valuation is supportive but secondary, with a moderate P/E and a decent dividend yield.

Positive Factors

Improving profitability

A materially higher net profit margin over several years strengthens internal capital generation and retained earnings. Sustained margin improvement enhances ability to absorb credit shocks, fund loan growth and investment, and support long-term returns without relying solely on external funding.

Strong balance sheet

Low leverage and a solid equity base provide structural resilience, improving loss-absorption capacity and regulatory headroom. This supports conservative lending, capital allocation flexibility, and long-term stability in a cyclical banking environment.

Improved cash generation

Stronger operating cash conversion and rising free cash flow increase self-funding ability for investments, loan book expansion and shareholder returns. Durable cash generation reduces dependence on wholesale funding and improves financial flexibility over multiple quarters.

Negative Factors

Operational margin volatility

Fluctuating operating margins point to inconsistent cost control or revenue mix shifts. For a bank, variable efficiency undermines predictability of core profitability, complicates capital planning, and could constrain sustainable improvement in returns if structural cost issues persist.

Uneven free cash flow growth

Inconsistent free cash flow reduces ability to forecast funding for loan growth, investments and dividends. Periodic cash weakness may force reliance on deposits or external borrowings and impair medium-term capital allocation and resilience to credit stress.

Exposure to rate and credit cycles

Earnings are structurally sensitive to NIM shifts and credit costs; adverse rate moves or rising NPAs would compress margins and raise provisions. This economic and credit-cycle exposure can materially affect profitability and capital over a multi-quarter horizon.

IDBI Bank Limited Business Overview & Revenue Model

Company Description

IDBI Bank Limited provides banking and financial solutions to retail and corporate clients in India. It operates through Corporate/Wholesale Banking, Retail Banking, Treasury, and Other Banking Operations segments. The company offers savings, current, and salary accounts, and fixed deposits; home, auto, education, and personal loans, as well as loans against properties and securities; debit, credit, and prepaid cards; phone, mobile, and Internet banking services; and investment advisory and capital market services. It also provides fund and non-fund-based assistance; packing credit to exporters; receivable buyout with recourse; channel financing for dealers of corporates; scheme for financing automated teller machines (ATMs)/cash dispense vendors; technology upgrading fund scheme for textile and jute industries; and lending to non-banking finance companies/housing finance companies and commercial real estate sector. In addition, the company offers bank guarantees, letters of credit, documentary collection, bill discounting, and foreign currency; cash management, treasury, trade finance, and remittance services; and debt syndication and advisory services. Further, it provides finance to micro, small, and medium enterprises; agriculture finance; and products and services for non-resident Indians. Additionally, the company offers information technology and security, and contact center services; merchant banking, stock broking, portfolio management of pension/PF funds; and mutual fund, security trusteeship assignments, share pledge trustee, venture capital fund, safe keeping, escrow agency, and other trusteeship services, as well as acts as a trustee to securitization transactions and bond/debentures. As of March 31, 2022, it operated 1,886 branches, 3,403 ATMs, and 58 e-lounges. The company was formerly known as IDBI Ltd. and changed its name to IDBI Bank Limited in May 2008. The company was founded in 1964 and is headquartered in Mumbai, India.

How the Company Makes Money

IDBI primarily earns money through interest income and fee-based income, with its overall profitability also influenced by credit costs and investment/trading results. 1) Net interest income (core banking spread): The largest earnings driver for a commercial bank like IDBI is typically the spread between (a) interest earned on assets—mainly loans and advances to retail, MSME, and corporate borrowers, and interest from investments—and (b) interest paid on liabilities—primarily savings, current, and term deposits and other borrowings. The difference, after funding costs and asset yields, contributes to net interest income. 2) Fees and commissions (non-interest income): IDBI also generates revenue from service charges and fees associated with banking services. These can include charges related to account and transaction services, payments and remittances, trade and cash-management services for businesses, loan processing and documentation fees, and commissions/fees from distributing third-party financial products where applicable. If specific fee lines are not publicly detailed here, individual line items are null. 3) Treasury and investment-related income: As a bank, IDBI holds a portfolio of securities and other investments for liquidity management and regulatory requirements, and it may earn interest income from these holdings as well as gains/losses from sale or valuation changes and other treasury activities. The contribution of this stream can vary with interest-rate movements and market conditions. 4) Other income: Additional earnings may come from recoveries, miscellaneous banking income, and other operating income categories reported in financial statements; specific subcomponents are null when not explicitly available. Key factors affecting how much IDBI makes: Net interest margin (pricing of loans vs. deposit costs), loan growth and mix (retail vs. corporate/MSME), asset quality (non-performing assets leading to provisions/credit costs), interest-rate environment (impacting both funding costs and treasury income), and customer transaction activity (driving fees). Significant partnerships specifically driving earnings: null.

IDBI Bank Limited Financial Statement Overview

Summary

Strong revenue growth and improving profitability, with net profit margin rising materially over the period cited. Balance sheet appears stable with low leverage, and cash generation has improved, though operational margin volatility and uneven free cash flow growth temper the score.

Income Statement

IDBI Bank Limited has demonstrated strong growth in its revenue and profitability over the past few years. The bank's gross profit margin and net profit margin have shown significant improvement, with the net profit margin increasing from 13.4% in 2021 to 22.4% in 2025. Revenue has grown consistently, reflecting a robust business model. However, the EBIT and EBITDA margins have fluctuated, indicating some volatility in operational efficiency.

Balance Sheet

The balance sheet of IDBI Bank Limited shows a stable financial position with a strong equity base. The debt-to-equity ratio is low, indicating prudent financial management and low leverage risk. The equity ratio has remained stable, suggesting a solid capital structure. However, the return on equity (ROE) has shown variability, reflecting the bank's journey towards improving shareholder returns.

Cash Flow

IDBI Bank Limited has shown a strong improvement in cash flow metrics. The bank's operating cash flow to net income ratio has improved, demonstrating efficient cash generation relative to its net income. Free cash flow has grown significantly, indicating strong cash generation capacity. However, fluctuations in free cash flow growth highlight potential challenges in maintaining consistent cash flow generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	336.72B	322.50B	294.45B	241.29B	220.83B	241.96B
Gross Profit	132.91B	179.94B	172.19B	149.98B	129.62B	127.88B
EBITDA	89.27B	81.27B	63.07B	41.86B	30.08B	18.46B
Net Income	92.84B	76.31B	57.88B	37.06B	25.34B	15.14B
Balance Sheet
Total Assets	4.17T	4.13T	3.64T	3.31T	3.02T	2.99T
Cash, Cash Equivalents and Short-Term Investments	317.82B	444.77B	260.09B	293.52B	102.36B	538.12B
Total Debt	243.01B	199.32B	364.76B	324.42B	323.19B	159.08B
Total Liabilities	3.48T	3.51T	3.13T	2.85T	2.60T	2.61T
Stockholders Equity	681.23B	616.20B	510.73B	463.19B	425.72B	376.28B
Cash Flow
Free Cash Flow	-53.56B	254.46B	184.21B	-28.95B	-41.27B	33.85B
Operating Cash Flow	-52.07B	257.96B	187.33B	-26.01B	-39.32B	34.43B
Investing Cash Flow	15.75B	-3.44B	-2.22B	-2.94B	-1.95B	-586.60M
Financing Cash Flow	-90.64B	-69.90B	202.58B	-35.65B	-43.83B	14.28B

IDBI Bank Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 114.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IDBI, the sentiment is Negative. The current price of 114.85 is above the 20-day moving average (MA) of 101.28, above the 50-day MA of 103.12, and above the 200-day MA of 97.59, indicating a bearish trend. The MACD of -8.38 indicates Positive momentum. The RSI at 19.72 is Positive, neither overbought nor oversold. The STOCH value of 2.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:IDBI.

IDBI Bank Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNIONBANK	82 Outperform	₹1.31T	5.78	―	3.15%	3.86%	19.14%
BANKBARODA	81 Outperform	₹1.41T	7.03	―	2.86%	4.40%	-3.84%
CANBK	75 Outperform	₹1.21T	6.69	―	2.66%	8.89%	19.79%
PNB	75 Outperform	₹1.26T	6.40	―	2.40%	12.10%	12.93%
INDIANB	69 Neutral	₹1.16T	8.96	―	2.07%	9.74%	12.56%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IDBI	65 Neutral	₹754.28B	14.17	―	2.08%	11.31%	37.17%

IDBI Bank Limited Corporate Events

IDBI Bank Opens Special One-Year Window for Transfer and Demat of Legacy Physical Shares

IDBI Bank has announced the opening of a special one-year window, from February 5, 2026 to February 4, 2027, to facilitate the transfer and dematerialisation of physical shares that were sold or purchased prior to April 1, 2019, or earlier transfer requests that were rejected due to documentation deficiencies. Eligible shareholders must submit original share certificates, transfer deeds, and supporting documents to the bank’s registrar for processing, with all re-lodged shares to be transferred only in dematerialised form, subject to a one-year lock-in, while cases under dispute or already moved to the Investor Education and Protection Fund are excluded from this facility.

The move aims to help legacy shareholders regularise old physical share transactions and align with SEBI’s regulatory push toward full dematerialisation, potentially cleaning up the bank’s shareholder records and reducing operational and compliance risks associated with physical securities. This initiative may also enhance transparency and liquidity for investors holding older physical certificates, while reinforcing the broader market transition away from physical shareholding in India’s capital markets.

IDBI Bank Shifts Demat Business to Capital Markets Subsidiary

IDBI Bank’s board has approved transferring the ownership and management of its existing demat business to its wholly owned subsidiary, IDBI Capital Market Services Ltd., by shifting its NSDL and CDSL depository participant IDs. The unit being transferred contributes less than 0.032% of the bank’s total income, and the related-party transaction, executed at arm’s length, will yield consideration of Rs 5.5 crore over a year, signaling a consolidation of securities-related activities under the specialized subsidiary while having minimal financial impact on the bank’s overall operations.

The move formalizes the demat business under IDBI Capital Market Services, a SEBI-registered entity already engaged in stockbroking, depository, and advisory services. By aligning depository services with its capital markets arm, IDBI Bank appears to be streamlining its structure and potentially enhancing operational focus and regulatory clarity, though the transaction is not categorized as a slump sale and falls outside the ambit of SEBI’s scheme of arrangement regulations.

IDBI Bank Warns of Potential Disruption from Proposed Nationwide Bank Strike on January 27

IDBI Bank has informed the stock exchanges that it has received a notice of a proposed all-India bank strike scheduled for January 27, 2026, called by the All India Bank Officers’ Association and the United Forum of Bank Unions in support of their demands. The bank’s disclosure under SEBI listing regulations signals a potential, though temporary, disruption to normal banking operations on the strike day, which could affect customer services and day-to-day transactions if the industrial action proceeds as planned.

IDBI Bank Posts Double-Digit Growth in Provisional Q3 FY25 Business Metrics

IDBI Bank has reported provisional key business figures for the quarter ended December 31, 2025, under SEBI disclosure norms. Total business rose to ₹5,46,634 crore from ₹4,89,245 crore a year earlier, reflecting year-on-year growth of about 12%, while total deposits increased to ₹3,07,828 crore, up around 9% from December 2024. CASA deposits stood at ₹1,35,630 crore, registering 4% growth year-on-year, and net advances climbed to ₹2,38,806 crore from ₹2,06,807 crore, a robust 15% increase, indicating continued expansion in the bank’s lending operations. These provisional numbers, which are subject to statutory audit review, suggest strengthening business momentum and a growing loan book, factors that are likely to be closely watched by investors and regulators for signals on IDBI Bank’s operational performance and competitive positioning in the Indian banking sector.